BillM223
Expert Alumni

Tax help for military filers

I am reading the instructions for line v on page 18 (where the retirement for inactive Reserve and National Guard time is subtracted). 

 

It appears to me to say that if you were in the military 20 years - 10 years active duty and ten years in the Reserves, that you would calculate the ratio of 10:20 and multiply the, let's say, $1,000 a month pension by 50% to get a subtraction of $6,000 a year on line v.

 

But is there any other situation other than active duty military and inactive Reserve duty (assuming that reservists called to active duty would be included as active duty)?

 

That is, what if you ignored the line v that you are referring to, and put the entire retirement on line p4 (which TurboTax does ask about, as you can see above)?

 

Would the final result be any different? Is there a reason from your calculations that the sum of line p4 and line v in your figuring would be different than the result that TurboTax would get if you just told it that all of the military retirement is nontaxable?

 

I am not saying this to avoid your point, but I am saying this as a potential workaround.

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